WTC 3.10.4 Narrative
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Section 3:  Resources

3.10.4

The institution exercises appropriate control over all its financial resources.

Compliance
Partial Compliance
Non-Compliance





Narrative:

Western Texas College exercises appropriate control over all its financial and physical reserves.   All of the College’s business and financial functions, and internal controls are under the direction of the Chief Financial Officer (prior to September 1, 2005, titled the Director of Fiscal Services). (link, Institutional Policy 2180)  The Chief Financial Officer (CFO) reports directly to the President of the college and works closely with the President with regard to making the financial decisions for the College.   Credentials for the CFO position as well as other personnel reporting to the CFO are listed on the Western Texas College Administrative Personnel Roster. (link)   The CFO is a member of the Administrative Staff, which affords direct and effective communication with administrative personnel.   The CFO, in conjunction with the President, is charged with maintaining the integrity of the College’s budgeting, receipting, purchasing, investing, financial reporting, and inventory procedures as guided by WTC’s Institutional Policy Manual, the Texas Higher Education Coordinating Board (THECB) (link, FY2005 Budget Requirements and Annual Financial Reporting Requirements for Texas Public Community and Junior Colleges), and in accordance with generally accepted accounting principles (GAAP) in the United States as set forth by the Governmental Accounting Standards Board (GASB).  The annual review conducted by an independent auditor has historically shown no material weaknesses in Western Texas College’s internal controls. (link pg 37, AFR 2003, link pg 24, AFR 2004, and link pg 25, AFR 2005).   

The internal controls with regard to business and financial functions are addressed in Series 3000 of the Institutional Policy Manual and are designed to protect the assets of the College, prevent loss from theft or misuse and to provide adequate and accurate financial reports.   The College’s internal controls also ensure compliance with laws, regulations, and federal and state contract and grant requirements.  

Board and Administrative Policies 3110 through 3160 (link Policy 3110- 3160) delineate the College’s budgeting process from the planning phase to the adjustment phase once the initial budget has been approved by the Board of Trustees in August of each year (http://wtc.edu/trustees/agenda/archives/2006-07/082906.htm , http://wtc.edu/trustees/minutes/2006-07/082906.htm ).    Specific minutes to refer to here are August 31, 2005, and August 29, 2006—EB  The annually-prepared budget is a statement of the estimated income and expenditures for the fiscal year, September 1 through August 31, based upon open discussion between the Administrative Staff and all divisions of the College regarding the goals and needs of each department.     The budget expresses the educational plans of the College in financial terms.    All areas of the campus are involved in budget planning, preparation, implementation, and maintenance.    In keeping with Board Policy 3122, (LINK) the CFO presents to the Board at its monthly meetings (LINK to Board minutes) “a statement of the overall operation of the college” which includes “a list of bills paid prior to the board meeting and a listing of budget balances by divisional categories.”  In this report, the CFO also presents, for the Board’s approval, any necessary amendments to the approved budget.    (http://wtc.edu/trustees/agenda/archives/2005-06/index.htm ).  Probably, we need to link either to the minutes or to the agendas, but not both???  --EdB

Board and Administrative Policies 3211 through 3293 (link Policy 3211-3293) address the internal controls related to the receipt of monies by the College including local, state and federal funding, student tuition and fees, miscellaneous sales, gifts, grants and donations.   All cash receipting is centralized in the Business Office where internal controls are in place for the deposit and the safeguarding of funds.  The Business Office maintains paper copies, related backup and detailed reports for most transactions.   Those transactions for which maintaining paper copies is not feasible due to storage constraints, such as student receipts, are easily reproduced electronically on the student billing and receivables program associated with the fiscal and student services software used by Western Texas College.    Incoming checks received via the mail service are logged and given a unique control number by the Purchasing Clerk before being given to the Cashier for receipting.   The Cashier receipts cash, checks and credit card payments through the fiscal software daily.   At the end of each day, the Cashier runs a closing report which shows the amount of the daily deposits for each fund.   The Cashier processes the deposits based on this report and balances the cash drawer.    Deposits are transported to the depository bank on the next day or sooner by one of the following: the Chief Financial Officer, the Controller, or the Campus Police Chief.    All monies received and held overnight on campus are placed in the vault of the Business Office or in safes provided to the golf course pro shop and the Student Activities game room for safekeeping as directed by Institutional Policy 3450.  (link, Policy 3450)

Policies 3300 through 3326 (link, Policy 3300-3326) address the internal controls related to expending college funds.     Purchasing is a centralized process with all purchase orders, reimbursements and payments being completed in the Business Office.   Final approval on all expenditures is granted by the Chief Financial Officer.   The CFO serves as the purchasing officer for Western Texas College as provided in stated in Administrative Policy 3320. (link Policy 3320).   WTC is a member of the Texas Building and Procurement Commission (www.tbpc.state.tx) and follows the Commission’s guidelines. (http://info.sos.state.tx.us/pls/pub/readtac$ext.ViewTAC?tac_view=3&ti=1&pt=5 ).

Inventories of equipment and other assets are addressed by Administrative Policy 3440. (link, Policy 3440)   As is discussed in Comprehensive Standard 3.10.1, WTC has a capitalization threshold of $5000 and a useful life in excess of one year for all asset classifications unless otherwise mandated for capital assets purchased with externally funded grants.  All capital assets with an initial cost of $5000 or more are tagged and/or assigned a unique inventory number by the Purchasing Clerk in the Business Office.   A qualifying asset’s description, vendor, cost, classification and any other pertinent information are entered into the fixed asset program associated with the College’s fiscal software package in order to maintain an inventory of these assets and to calculate annual depreciation of these assets.   An asset with a purchase cost of $4999 or less is generally the responsibility of the individual department which has possession of the asset or which purchased the asset, unless the asset is classified as telecommunications or periphery equipment; these assets are the responsibility of the Dean of Information Technology Services and the Technology department.
 
Board Policy 3600 states the investment guidelines for the College.   WTC’s policy follows the requirements of the Texas Public Funds Investment Act of 1995, Section 2256.  (http://tlo2.tlc.state.tx.us/statutes/docs/GV/content/pdf/gv.010.00.002256.00.pdf ).   The President and the Chief Financial Officer act as investment managers for all funds of the College, and must attend a training session once every two years to receive ten hours of investment training by an independent source.   An analysis of the investment portfolio of the College is presented to the Board of Trustees for their review and approval at their monthly meetings. (http://wtc.edu/trustees/agenda/archives/2005-06/index.htm).   Use board minutes here???   The CFO posts quarterly investment reports on the Institutional Information page of the College’s website. (Investment Disclosure, http://wtc.edu/institutionalinfo.htm ).

Evidence of Support:

Institutional Policy 2180
Western Texas College Administrative Personnel Roster Information chart
Institutional Policy, Series 3000
FY2003 AFR
FY2004 AFR
FY2005 AFR
FY2005 Budget Requirements and Annual Financial Reporting Requirements for Texas
          Public Community and Junior Colleges
Texas Building and Procurement Commission, http://www.tbpc.state.tx.us/
Texas Building and Procurement Commission, Texas Administrative Code,
    http://info.sos.state.tx.us/pls/pub/readtac$ext.ViewTAC?tac_view=3&ti=1&pt=5
Texas Public Funds Investment Act of 1995, Section 2256
    http://tlo2.tlc.state.tx.us/statutes/docs/GV/content/pdf/gv.010.00.002256.00.pdf
Board Agendas/Minutes September 2005-August 2006,
    http://wtc.edu/trustees/agenda/archives/2005-06/index.htm


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